When the financial markets are regulated, the results can be both positive and negative. There are various reasons why players in the financial sector love regulation. For example, regulation prohibits rogue activities such as insider trading, which can leave investors with huge losses. In some countries, regulation work is left to a single body. In other cases, multiple players may regulate the same industry players. Regulation has various advantages and disadvantages.
Rules Are Different Across the Globe
All countries around the world have rules that govern participation in their financial industry. The regulatory bodies have various powers and responsibilities in the markets they are in charge of.
In some countries, all matters related to the financial sector have been assigned to a single regulatory firm. Participants in the financial sectors of these countries have to engage with the regulators body in different …